Union Pacific 2011 Annual Report Download - page 36

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The tables below detail cash capital investments and track statistics for the years ended December 31,
2011, 2010, and 2009:
Millions 2011 2010 2009
Rail and other track material $ 697 $ 626 $ 614
Ties 403 444 449
Ballast 220 190 208
Other [a] 382 365 338
Total road infrastructure replacements 1,702 1,625 1,609
Line expansion and other capacity projects 311 122 162
Commercial facilities 111 227 193
Total capacity and commercial facilities 422 349 355
Locomotives and freight cars 675 330 272
Positive train control 229 84 28
Technology and other 148 94 90
Total cash capital investments $ 3,176 $ 2,482 $ 2,354
[a] Other includes bridges and tunnels, signals, other road assets, and road work equipment.
2011 2010 2009
Track miles of rail replaced 895 795 841
Track miles of rail capacity expansion 69 46 62
New ties installed (thousands) 3,785 4,334 4,814
Miles of track surfaced 11,284 10,883 15,128
Capital Plan – In 2012, we expect our total capital investments to be approximately $3.6 billion, which
may be revised if business conditions warrant or if new laws or regulations affect our ability to generate
sufficient returns on these investments. We expect that over 50% of our 2012 capital investments will
replace and improve existing capital assets. Major investment categories include replacing and improving
track infrastructure; upgrading our locomotive, freight car and container fleet, including acquisition of 200
locomotives and 1,800 freight cars including large covered hoppers, gondolas, and small covered
hoppers; improving technology, including investing in PTC; and other capital projects. Additionally, we
will continue to increase our network and terminal capacity; for example, to balance terminal capacity with
mainline capacity being added by our double-tracking project on the Sunset Corridor, we are constructing
a rail facility at Santa Teresa, New Mexico, that initially will include a run-through and fueling facility and
an intermodal ramp.
We expect to fund our 2012 cash capital investments by using some or all of the following: cash
generated from operations, proceeds from the sale or lease of various operating and non-operating
properties, proceeds from the issuance of long-term debt, and cash on hand. Our annual capital plan is a
critical component of our long-term strategic plan, which we expect will enhance the long-term value of
the Corporation for our shareholders by providing sufficient resources to (i) replace and improve our
existing track infrastructure to provide safe and fluid operations, (ii) increase network efficiency by adding
or improving facilities and track, and (iii) make investments that meet customer demand and take
advantage of opportunities for long-term growth.
Financing Activities
Cash used in financing activities increased in 2011 versus 2010. Higher dividend payments in 2011 of
$837 million compared to $602 million in 2010, reflecting our increased dividend rate and the repurchase
of $1.4 billion of our common stock, a $169 million increase from 2010 repurchases, drove the increase.
We used less cash to reduce outstanding debt in 2011, which partially offset this increase. Cash used in
financing activities increased in 2010 versus 2009. During 2010, we repurchased $1.2 billion of shares
under our common stock repurchase program, compared to no repurchases in 2009. Additionally, our net
debt reduction in 2010 was $518 million compared to $28 million in 2009, which also contributed to the
increase in cash used in financing activities in 2010.